Is the euro’s bull ride over?

Market Pulse: February 4

Last week the March 2013 euro futures contract opened at 1.34680 and closed the week at 1.36650. Note the euro opened 2013 at 1.32570 and in the first week of January almost touched 1.30000 before this latest ride up. In January it seemed very quiet from the EU regarding the debt crisis. We did hear from numerous EU leaders that they thought the worst was over. That is of course until today, more on that later.

On the daily chart you see ADX over 50 reflecting a very strong trend. MACD has added divergence from above the signal line and Stochastics have been in deep overbought territory until today’s price action. On the weekly chart you can see ADX at 47.9 reflecting a strong trend and weekly Stochastics are in deep overbought territory. You do not need to look beyond the weekly chart to see what happened in the latest move up from 1.22000.